AMD Looking to Sell Texas Site As PC Sales Continue to Nosedive
November 29, 2012 1:25 AM
comment(s) - last by
It hopes to close the deal in Q2 2013
Advanced Micro Devices (AMD) is selling its Texas campus as a result of the sluggish PC market.
Chip maker AMD said it will sell and lease back its 58-acre Austin, Texas campus for $150 million to $200 million. It hopes to close the deal in Q2 2013.
This isn't the first sign of AMD's struggles. In
, the company's cash declined $279 million to $1.48 billion. Research firm Gimme Credit also downgraded its rating for AMD from "stable" to "deteriorating." Furthermore, it has been laying off engineers (about 15 percent of its workforce in October 2012) as it attempts to save some cash.
Why the troubles? Mainly because 85 percent of AMD's business relies on the PC market, and the PC market has been taking a hard hit in recent years.
Since the introduction of mobile gadgets like the smartphone and tablet, PCs have seen a strong decline in sales. Consumers want mobility, and these gadgets combine the power of PCs with the convenience of mobility. Hence, PCs have been down in the dumps.
AMD is currently looking to sneak into other markets in order to stay afloat. In late October, the chip maker announced it was
making 64-bit ARM processors
for multiple markets. It's starting with its
Piledriver Opteron 6300 Series
, which will replace the Bulldozer-equipped Opteron 6200 Series.
Just this month,
claimed that AMD was pursuing a sale
, but AMD denied it. It's currently looking into its options, but a sale isn't No. 1 on the list.
Intel has been in the same PC slump as AMD, but seems to be doing better through these hard times. It posted a better-than-expected
$3 billion USD profit in Q3 2012
, and has been working hard on its
22 nm Haswell architecture
to rival the likes of AMD. Haswell will launch in 2013.
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RE: PC sales show strong drop?
11/29/2012 7:01:24 AM
Tablets will not be replacing games consoles in the next year. Sure for casual gamers (Farmville playing idiots) its a market games companies should explore. But for those wanting to play Halo, CoD, Assassin's Creed, Uncharted, and the like, tablets have zero chance of infringing in the console market. You can't build a tablet that will output the kind of graphics current gen consoles can, much less next generation, in a few watt power envelope. And even if you could, why do I want to play on a 10" screen vs. a 50" one. Sure you can have HDMI out on a tablet but now you're talking more power again.
I guess you're wanting something that will hit 130F in your hands.
Now I will say that the next generation consoles will likely have some issues with sales. Many are still satisfied with the current gen consoles. And with the economy in the toilet, there will be many who will find it hard to justify the upgrade. Of course the leeches on society will likely have no issue with buying them (note: not affording, just buying) as proven by nearly every person you see on food stamps or welfare having a smart phone, HDTV, cable, etc.
"The Space Elevator will be built about 50 years after everyone stops laughing" -- Sir Arthur C. Clarke
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